Gold coast chapter 16
What type of value does an appraiser most commonly estimate?
A. Book
B. Market
C. Insurable
d. Condemnation
B. Market
How is investment value best defined?
A. The value of an individual
B. The highest price a property would sell for in an open market
C. The value based on the use of the property
D. The minimum value of a business opportunity
A. The value of an individual
Which of the following conditions is necessary for the sales price of a property to equal its
market value?
A. The parties cannot be acting in their own self-interest
B. The property would have to be exposed to the market before and unreasonably short time
C. There can be no existing liens against the title
D. The transaction must involve a willing and informed buyer and seller
D. The transaction must involve a willing and informed buyer and seller
what is market value?
A. The amount a buyer is willing to pay
B. The amount a seller is willing to accept C. The amount that should be paid
D. The amount that was previously paid
C. The amount that should be paid
how is a gross rent multiplier calculated? A. Multiply comparable property sales price by
comparable property rent
B. Divide comparable property sales price by comparable property rent
c. Multiply comparable property sales price by subject property rent
D. Divide comparable property sales price by subject property rent
B. Divide the comparable property sales price by comparable property rent
Functional obsolescence includes which of the following?
A. An over improvement
B. Broken windows
, C. A wastewater treatment plant next to the subject property
d. A property located in the glide path to an airport
A. An over improvement
Which appraisal approach would be given greater weight when appraising an apartment
complex?
A. Cost depreciation B. Income approach C. Sales comparison D. Land residual
B. Income approach
Which appraisal approach is most suitable for estimating the value of a single family
property?
A. Cost depreciation B. Sales comparison C. Income approach D. Land residual
B. Sales comparison
What is the basis for the principle of substitution?
A. An informed buyer will pay no more for a property than the cost of acquiring another
equally desirable property with the same or equal utility
B. Properties will typically hold their value when properties in a neighborhood tend to be
similar and conform to common standards
C. Although a property may have multiple potential uses, one will be the highest and best
use
D. Smaller properties in a neighborhood of large properties will tend to increase in value,
while larger properties in an area of smaller properties will tend to decrease in value over
time
A. And informed buyer will pay no more the for a property than the cost of acquiring another
equally desirable property with the same or equal utility
All of the following methods may be used to estimate replacement / reproduction cost,
except:
a. Quantity survey B. Economic age - life C. Unit - in - place D. Comparative unit
D. Economic age - life
what estimate is a result of income divided by a capitalization rate?
A. Market value
B. The effective gross income
C. Reproduction cost
D. The amount of accrued depreciation
A. Market value
What type of value does an appraiser most commonly estimate?
A. Book
B. Market
C. Insurable
d. Condemnation
B. Market
How is investment value best defined?
A. The value of an individual
B. The highest price a property would sell for in an open market
C. The value based on the use of the property
D. The minimum value of a business opportunity
A. The value of an individual
Which of the following conditions is necessary for the sales price of a property to equal its
market value?
A. The parties cannot be acting in their own self-interest
B. The property would have to be exposed to the market before and unreasonably short time
C. There can be no existing liens against the title
D. The transaction must involve a willing and informed buyer and seller
D. The transaction must involve a willing and informed buyer and seller
what is market value?
A. The amount a buyer is willing to pay
B. The amount a seller is willing to accept C. The amount that should be paid
D. The amount that was previously paid
C. The amount that should be paid
how is a gross rent multiplier calculated? A. Multiply comparable property sales price by
comparable property rent
B. Divide comparable property sales price by comparable property rent
c. Multiply comparable property sales price by subject property rent
D. Divide comparable property sales price by subject property rent
B. Divide the comparable property sales price by comparable property rent
Functional obsolescence includes which of the following?
A. An over improvement
B. Broken windows
, C. A wastewater treatment plant next to the subject property
d. A property located in the glide path to an airport
A. An over improvement
Which appraisal approach would be given greater weight when appraising an apartment
complex?
A. Cost depreciation B. Income approach C. Sales comparison D. Land residual
B. Income approach
Which appraisal approach is most suitable for estimating the value of a single family
property?
A. Cost depreciation B. Sales comparison C. Income approach D. Land residual
B. Sales comparison
What is the basis for the principle of substitution?
A. An informed buyer will pay no more for a property than the cost of acquiring another
equally desirable property with the same or equal utility
B. Properties will typically hold their value when properties in a neighborhood tend to be
similar and conform to common standards
C. Although a property may have multiple potential uses, one will be the highest and best
use
D. Smaller properties in a neighborhood of large properties will tend to increase in value,
while larger properties in an area of smaller properties will tend to decrease in value over
time
A. And informed buyer will pay no more the for a property than the cost of acquiring another
equally desirable property with the same or equal utility
All of the following methods may be used to estimate replacement / reproduction cost,
except:
a. Quantity survey B. Economic age - life C. Unit - in - place D. Comparative unit
D. Economic age - life
what estimate is a result of income divided by a capitalization rate?
A. Market value
B. The effective gross income
C. Reproduction cost
D. The amount of accrued depreciation
A. Market value
